On the Vento launch, Mayer said: “The Vento has always been among our best received products in the market and with the changes made…we are confident that the product will continue to appeal to our customers.”

The company had first launched Vento in 2010 and since then has sold around 1.10 lakh units of the sedan.

The new Vento comes in both petrol and diesel engines.

Volkswagen is planning to make India a low-cost manufacturing hub, which will cater to emerging and developed markets.

The company plans to invest Rs 1,500 crore on localisation and producing cost-effective products. It also plans to increase the production capacity at the Chakan and Aurangabad units in the next two years.

Volkswagen plans to increase its production to two lakh units by 2018 and add more new models from the Chakan plant.

In India, Volkswagen group has five brands – Audi, Volkswagen, Skoda, Porsche and Lamborghini.